To evaluate a mutual fund scheme’s performance, it is indispensable to assess its returns in the past few years, while weighing the pros and cons of other factors too.
Here we assess the past few year returns of a top-performing thematic fund i.e., Tata India Consumer fund as revealed by the AMFI (Association of Mutual Funds in India) data as on August 22, 2022.
As we can see in the table below, this mutual fund scheme offered a return of 20.92 percent in the past three years. This means if someone had invested ₹10,000 at the time of fund’s allotment, the investment would have grown to ₹17,680 by now.
Also, the CAGR returns of the fund in the past five years, and since its inception in Dec 2015 are 14.47 percent and 17.89 percent, respectively.
|Tenor||Returns (%)||If invested ₹10,000, it would be|
(Source: AMFI data; direct returns as on Aug 22, 2022)
Key facts: The benchmark of mutual fund is Nifty India Consumption TRI. Its portfolio orientation is investment in 80 percent of its assets in equity and equity related instruments of the companies in the consumption-oriented sectors in India. The fund managers are Sonam Udasi and Enette Fernandes.
Size of the fund is ₹1,341.62 crore and the minimum investment one can make in the fund scheme is ₹5,000, according to the AMC’s leaflet.
The exit load is 0.25 percent of net asset value if redeemed/ switched out before 30 days from the date of allotment.
Portfolio allocation: The top stock holdings in the mutual fund portfolio include Asian Paints, Titan Company, Tata Consumer Products, Dabur India, Jubilant Foodworks, Voltas, Kansai Nerolac Paints, Nestle, Hindustan Unilever and ITC. The top sectors the mutual fund is exposed to include consumer durables (40 percent), FMCG (36 percent), consumer services, automobile and capital goods.
The fund has an exposure to large cap, mid cap and small cap stocks in the ratio of 63.25 percent, 25.97 percent and 10.79 percent, respectively, as per the data shared by the AMC.